Factors Affecting Millenials’ Acceptance of E-Money Application in Jakarta

Abstract

The use of e-money applications such as OVO, Gopay, Dana, LinkAja and other e-money applications have significantly increased the volume of non-cash transactions in Indonesia, but, Indonesia’s non-cash transaction is still below its region’s countries. On the other hand, Millennial generations (Millenials) is reported  as the largest users of e-money applications as well as the largest potential market in Indonesia, however, limited researches have been conducted to study the acceptance of e-money applications by Millennials. This research is intended to determine factors that have significantly influenced Millenial’s acceptance of e-money applications based on the theory of Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB), which covers variables include Perceived Usefulness, Perceived Ease Of Use, Trust, Subjective Norms, Attitude Toward Use and Behavior Intention. This research examined 100 Millenials in Jakarta, which selected with purposive sampling technique, and tested using PLS SEM statistical analysis method. The results show that Perceived Usefulness has the strongest positive effect on Attitude Toward Use, followed by Trust. While Attitude Toward Use and Subjective Norms have positive effect on Behavior Intention. Whereas, Perceived Ease of Use and Subjective Norms have no significant effect on Attitude Toward Use. It is concluded that Perceived Usefulness and Trust are the two main factors which influenced Millenial’s acceptance of e-money applications in Jakarta.